Welcome

Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $3,800/month.

Friday, October 19, 2012

Analysis of Keppel REIT


Current Price on 19th October 2012 = $1.235
  • Current Yield = 6.37%  
  • Price-to-book Ratio = 0.983
  • Assets per unit = $2.42
  • Debt per unit = $1.056 (including current liabilities)
  • Gearing = 44.9%
  • Secured NAV = $0.628 (51%)  

Keppel REIT has reported its results yesterday which is not surprising to me. Yield is at 6.37% which is quite good actually considering that it is at the top end of the Office REIT sector. NAV is edging close to the all important one soon. Once its results are released, its price surged to $1.23 which is very high.

Keppel REIT continues to have good news with an acquisition in Australia which is yield accretive. Its ORQPL has yet to be converted which could save some taxes. Thus, I believe there is still room for growth in its yield even though it looks limited.

I am vested with 18,000 shares. I am looking at this closely because I was thinking of off-loading but yields in REITs has been very low so there are limited choices. Moreover, I think it would be great to invest in the Singpaore Office Sector which is usually not available to retail investors like me.

I will be holding on to it for another 3 months and see how they are able to continue to grow this REIT.
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4 comments:

  1. TristanOctober 21, 2012 at 11:13 PM

    just wondering if you could provide me some information/websites about how to set up/register REITS-related company in SGX. Keep up the good work! Thanks!

    ReplyDelete
    Replies
    1. jc.education.sgOctober 22, 2012 at 10:04 PM

      Hi Unknown,

      I am just a retail investor so I am not really sure about it... You might want to look at http://www.enterpriseone.gov.sg/ to search for information... mas.gov.sg is also important for regulation...

      Delete
  2. ryanOctober 29, 2012 at 9:14 PM

    K-Reit has a very high gearing ratio. I am looking at this very closely as there might be a concern that the company will have rights issue to fund further acquisition.

    ReplyDelete
    Replies
    1. jc.education.sgNovember 6, 2012 at 7:46 PM

      Rights issue may not be a bad thing as I treat it as additional investment for further acquisition. Plus I can apply for excess rights at a discount although there is no guarantee that I will get.

      It is a zero-sum game so if they call for rights, just make sure that it is for strengthening the REIT.

      Delete

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